LTIMindtree Q3 FY24 Results: Net profit surges by 17%, revenue up 5% YoY

LTIMindtree, the IT service provider, announced its financial results for the third quarter of fiscal year 2024 on Wednesday. The company reported a quarterly revenue of ₹9,016.6 crore, showing a 1.2% quarter-on-quarter (QoQ) and 4.6% year-on-year (YoY) growth. 

The net profit for the quarter was Rs 1169.3 crore, with a QoQ growth of 0.6% and a YoY increase of 16.8%. Attrition for the quarter decreased to 14.2%, down from 15.2% in the previous quarter. 

The total headcount for October-December declined to 82,471, compared to 83,532 in the September quarter and 86,462 in the same period last year, as reported by the company. 

CEO and Managing Director, Debashis Chatterjee, expressed confidence in the results. He stated, “Our strong operational performance in a seasonally weak quarter speaks about the organisation’s resilience amid the continuing macro challenges. For the quarter, we reported a revenue of $1.08 billion, a 3.5% YoY growth in USD terms, an EBIT margin of 15.4%, an increase of 150 bps YoY, and a PAT margin of 13%, an increase of 140 bps YoY. We have booked our highest-ever order inflow at $1.5 billion, representing a 21% increase YoY, and our strong cash flow metrics helped us cross ₹10,000 crore in cash and investment balance. These strong indicators make us confident to deliver on our path to success as we enter the new year.”  

The client base also expanded to 739 active clients as of December 31, 2023. The company witnessed growth in clients, with $5 million+ clients increasing by 5 on a YoY basis, totaling 149. ₹10 million+ clients showed a strong growth of 8, reaching a total of 89. 

In terms of business segments, the company shared that the BFSI sector declined by 1.4% in revenue, while the hi-tech, media, and entertainment segment remained stable with a marginal growth of 0.3%. The manufacturing vertical exhibited robust performance, recording a 20% growth during the third quarter. 

In 2022, L&T Infotech (LTI) and Mindtree announced their merger, anticipating significant scale benefits through complementary strengths. The merger was aimed at improving the portfolio of offerings across verticals and enhancing customer engagement and delivery models.